WOODBURY, N.Y. and SHANGHAI, China -- Veeco Instruments Inc. (Nasdaq: VECO - News) announced that it has opened an office in Shanghai to support recent customer orders in the fast-growing China market. Veeco has received recent metrology and process equipment orders from Semiconductor Manufacturing International Corp (SMIC) and the Chinese Academy of Sciences, among other customers. These recent orders highlight Veeco's success in penetrating China's semiconductor, data storage, telecom/wireless, and scientific/research markets. The new Shanghai office will have more than 10 employees by the end of 2003, and will support Veeco customers in all of its served end-markets. "Following the opening of our Nanotechnology Center in November of 2002 in Beijing, we are now taking the next step in China by establishing the necessary infrastructure to support our existing and future customers in China," commented Michael Weiss, Vice President and General Manager of Veeco's Asian operations. "We see a broad and increasing demand for our products in technology and research sectors across China. The Shanghai office will provide comprehensive product support and 24-hour service." Veeco has received an order for multiple Dimension Vx 210 Atomic Force Profiler (AFP) systems from SMIC, the first full-service 8" semiconductor foundry in China. The order represents an important competitive win for Veeco. Veeco will begin shipping the Dimension Vx 210 systems this year to SMIC's manufacturing complex in Shanghai. According to the Semiconductor Industry Association, China represents the world's fastest growing market for semiconductors, and will become the second largest chip market, behind the United States, in the next decade. In addition to the SMIC win, Veeco also announced an order from the Chinese Academy of Sciences Institute of Semiconductors for its GEN II Molecular Beam Epitaxy (MBE) Systems to be used for R&D optoelectronic and wireless telecommunications applications. The Veeco office in Shanghai is located at Shanghai Pudong, Civil Aviation Center, Suite 2015, 187 Xin Qiao Road, Pudong, Shanghai 201206. The telephone is 8621-5030-8887. Veeco Instruments Inc.